Members of Monetary Policy Committee
Why it matters?
The RBI Central Board, chaired by Governor Sanjay Malhotra in Lucknow, nominated Executive Director Indranil Bhattacharyya as an ex-officio member of the Monetary Policy Committee (MPC). The Board also reviewed global and domestic economic trends, including geopolitical and financial market risks.
What you should know?
MPC legal Basis:
Established under Section 45ZB of the RBI Act, 1934 (amended in 2016).
Its mandate include:
Deciding the repo rate to achieve inflation targeting.
Inflation targeting: 4% CPI inflation ± 2% (tolerance band).
Ensures price stability while supporting economic growth.
Composition (6 members):
RBI Governor – ex-officio Chairperson.
RBI Deputy Governor in charge of Monetary Policy – ex-officio.
One Executive Director of RBI – ex-officio (currently Indranil Bhattacharyya).
Three members nominated by the Central Government – experts in economics/finance/monetary policy.
Decision-making in the MPC:
Each member has one vote.
Decisions taken by majority.
Governor has a casting vote in case of tie.
Meetings must be held at least four times a year.